The present invention relates to the field of digital computer systems, and more specifically, to a method of backing up and restoring encrypted file objects in a computer system. At present, an encrypted file which is encrypted with file system techniques and is needed to be backed-up must first be decrypted using the file system techniques and then encrypted again with the backup client and its server techniques to store it in an encrypted format in the backup server. In reverse, for a file to be restored from the backup server, it must first be decrypted with backup server techniques and then re-encrypted after it has arrived back in the file system.